North Carolina Down Payment Support Programs

Payments Gateway - The North Carolina Housing Finance Agency has two great programs for First Time Home Buyers. These programs would be the Down Payment Assistance System along with the Mortgage Credit Certificate.

You also purchase a property between January 1, 2009 and December 1, 2009 and should you meet the requirements for one of those plans, you can even qualify for the $8,000 tax credit just enacted into law.

First, who is a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a house in the past three years. Here is exactly the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with average and low incomes. The MCC takes this a step further.

In case you qualify for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your own federal income taxes on your own mortgage. It is possible to save around .

You may have the ability to join this with the $8,000 tax credit should you qualify for 2009. This may reduce the tax liability of a buyer's .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income and also the price of the home you're buying. Household income means the “gross income of the mortgagor and any man anticipated to reside in the dwelling who's 18 years old or older.”

The income and house price limits that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Individual $61,500 2 Persons $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limits New Home $220,000 Existing Dwelling $210,000

Home buyers that need help with their deposit and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay around $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan outlined above. Like the MCC application, it can be used in combination with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, cannot be applied together with all the MCC. That is an either or situation.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Men $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New House $210,000 Existing Dwelling $210,000